Entries by Staff

Lending to your own: RBI Amendment Directions on Loans to Related Parties

-Team Finserv | finserv@vinodkothari.com On January 5, 2026, the RBI issued the Amendment Directions on Lending to Related Parties by Regulated Entities. Pursuant to this, changes were introduced to Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) – Amendment Directions, 2026 (CRM Amendment Directions) and Reserve Bank of India (Non-Banking Financial Companies […]

Credit Risk Management Rules modified: RBI brings revised norms on Related Party Lending and Contracting

– Team Corplaw | corplaw@vinodkothari.com Continuing with the spree of regulatory changes brought in 2025, RBI has issued Amendment Directions on Lending to Related Parties by Regulated Entities. Separate notifications have been issued for each regulated entity, based on the draft Directions for lending and contracting with related parties issued on 3rd October, 2025. We […]

Does Co-lending Make Default a Communicable Disease?

How to ensure uniform asset classification under co-lending Simrat Singh | finserv@vinodkothari.com Asset classification under RBI regulations has always been anchored to the borrower, not to individual loan facilities. Once a borrower shows repayment stress in any exposure, it is no longer reasonable to treat the borrower’s other obligations as unaffected; prudence requires that all […]

Partly Paid Shares – Whether Doppelganger of Share Warrants?

– Pammy Jaiswal and Saket Kejriwal | corplaw@vinodkothari.com Background In recent times, the use of partly-paid shares has seen some traction[1] where several listed companies[2] came up with issuance of partly-paid shares[3]. While the law provides for the issuance of partly-paid securities, it is important to understand how this instrument has not been used merely […]

A Guide for AIF Managers on Investor Eligibility and Regulatory Restrictions

Simrat Singh, Senior Executive | finserv@vinodkothari.com Introduction An AIF raises capital by issuance of units, which are privately placed.  Most AIFs follow a commitment–drawdown model, under which investors agree upfront to commit a specified amount of capital (‘committed capital’). The AIF manager then calls this committed capital, either in full or in tranches, as investment […]

Keeping It Private: Do’s and Dont’s For AIF distributors

Simrat Singh and Manisha Ghosh | finserv@vinodkothari.com  Alternative Investment Funds (AIFs) are privately pooled investment vehicles that are registered with and regulated by SEBI. These funds raise capital from a group of investors and deploy it in accordance with pre-defined investment strategies that are disclosed upfront. The returns generated from such investments, after deducting applicable […]